Canada’s Automotive Industry Stands Up To Potential U.S. Tariffs

The Canadian Automotive Partnership Council (CAPC) met to discuss the competitiveness of the sector amidst the ongoing uncertainty created by trade negotiations and tariffs.

For over 50 years, the United States and Canada have built vehicles together and are part of a highly integrated North American market where parts and components cross the border multiple times before a car leaves the assembly line. As technology is rapidly changing the nature of the automotive industry, Canada’s capabilities and clusters of innovation put us in position to strengthen the North American ecosystem and keep us competitive into the future.

While Canada’s innovative strengths are a reason for optimism, CAPC members are concerned about the potential for tariffs on Canada’s auto exports into the U.S. These tariffs, along with existing tariffs already implemented on steel and aluminum would severely harm our ability to compete on the global stage.

CAPC members wrapped up the meeting by reaffirming their shared commitment to a strong, integrated and competitive North American automotive industry and the importance of continuing to stand united in pursuit of this objective.

CAPC members were joined by the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development Canada and the Honourable Jim Wilson, Ontario’s Minister Economic Development, Job Creation and Trade. Representatives from the Government of Québec also attended the meeting.

“Our government has a track record of support for the automotive sector,” said the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development. “We stand ready to build on this support for the over 500,000 Canadians employed in this vital sector.”

“Our government will continue to vigorously defend and advance Ontario’s economic interests at home and abroad,” said the Honourable Jim Wilson, Ontario Minister of Economic Development, Job Creation and Trade. “The U.S. and Canada share a unique economic relationship grounded in fair and balanced trade, integrated supply chains and complementary markets. Jobs across our economy, workers and their families, businesses, and entire communities, are counting on us to advocate for them and defend Ontario’s and Canada’s interests. The federal government must reach a deal on NAFTA and keep the automotive industry and its workers top of mind in their decisions.”

“We’re not alone in our efforts to put the brakes on tariffs because of the adverse impact on automakers, suppliers, dealers, and ultimately the end consumers,” said Don Walker, CEO of Magna International Inc. and Chairman of CAPC. “It is important that we continue to emphasize that no one wins if further tariffs are implemented on our sector.”